Real estate supply improves but prices remain 'unreasonably' high

The real estate market has shown signs of improvement but is not uniform among segments - Photo: NGOC HIEN

At the conference "Overview of Vietnam's real estate market 2024 and focus on Binh Duong" held in Ho Chi Minh City on September 18, Mr. Nguyen Quoc Anh, Deputy General Director of Batdongsan (member of PropertyGuru Group), said that data showed that the market has shown signs of reversal, and interest in real estate tends to increase.

In particular, the number of searches nationwide in the third quarter (on this company's tool) recorded an increase of 49%, private houses increased by 25%, apartments and villas increased by 24% and 22% respectively compared to the same period last year.

However, compared to the first quarter of 2022, the level of interest in new segments is about 60%, only apartments have increased by more than 17% compared to 3 years ago.

According to Mr. Quoc Anh, many new projects launched in Hanoi and Ho Chi Minh City have improved supply, but the projects all have quite high prices. In Hanoi, the average price ranges from 45 to 90 million VND/m². In Ho Chi Minh City, the average price ranges from 45 to 130 million VND/m².

A survey conducted by this unit on brokers gave surprising results, with 10.6% of brokers saying the prices of the projects were "very unreasonable", 18.9% saying "unreasonable", 47.7% saying average and 22.8% saying reasonable.

Mr. Quoc Anh commented that the three revised laws on Housing, Land and Real Estate Business were applied early and received a warm welcome from buyers, sellers, trading floors and investors.

The new law is expected to increase transparency, help improve supply and open up new preferential and support policies to promote market growth.

In the southern market, Mr. Dinh Minh Tuan, director of the southern region of Batdongsan , said that among the southern localities, Binh Duong is the province with the most outstanding growth in interest and stable selling prices. Specifically, the interest in Binh Duong real estate in the third quarter is expected to increase by 32% compared to the same period last year. Other localities such as Long An, Ba Ria - Vung Tau, Dong Nai have increased by 17 - 22%. Apartments are the segment attracting the most interest in Binh Duong for both sale and rent, concentrated in the area near Ho Chi Minh City.

Dr. Can Van Luc said that the market is showing signs of recovery, although it is still slow and uneven.

According to Mr. Luc, the support to promote comes from the macro economy, interest rates maintained at low levels, exchange rates gradually softening, budget deficit, public debt, foreign debt, government debt repayment obligations... are all within the allowable threshold.

In addition, legal problems have been gradually resolved, public investment and infrastructure development have been promoted, and financial obligations have passed the most difficult period. This is a premise to promote the recovery of the real estate market.

Real estate business revenue reached 173,004 billion VND

According to the Ho Chi Minh City Statistics Office, in the past 8 months, the city's real estate business revenue was estimated at VND173,004 billion (equivalent to nearly USD7 billion), up 6.1% over the same period last year.

In the past 8 months, the number of enterprises licensed to operate in real estate was 958 enterprises and registered capital reached 37,432 billion VND, down 2.3% in the number of licenses granted compared to the same period and down 8.6% in capital.

Last year, real estate business growth in Ho Chi Minh City was -6.38%, but from the first quarter until now, it has grown positively, with each quarter increasing higher than the previous quarter, from 2.51% in the first quarter to 2.94% in the second quarter of 2024, and reaching 6.1% in the past 8 months compared to the same period last year.

Mr. Nguyen Duc Lenh, Deputy Director of the State Bank of Vietnam, Ho Chi Minh City Branch, said that the growth rate of real estate credit reached 5.5%, higher than the general credit growth rate in the area. Of which, housing credit (including social housing, commercial housing, other housing) accounted for the highest proportion, accounting for about 57% of the total outstanding real estate credit in the area.

Source: https://tuoitre.vn/nguon-cung-bat-dong-san-cai-thien-nhung-gia-neo-cao-bat-hop-ly-20240918190743701.htm